If you are contributing any written material, there may be claims for slander or defamation. Whether true or false, once the client claims for compensation, you have to bear the legal cost. The legal expenditure might be thousands of pounds. In such a situation, professional liability insurance helps a lot by safeguarding you from any financial loss.
Professional indemnity insurance comes into rescue only when a claim is made. No matter whether you win or loose in the legal battle, the insurance policy covers your legal costs. However, in many cases, insurance companies chose out-of-court settlement to help both parties from unnecessary legal hassles.
There are some professional indemnity policies that cover your negligence and errors from an earlier date of purchase. However, your mistakes need to be unintentional for this coverage. These policies can not safe guard you if you change your profession. You can opt for professional indemnity insurance policies with ?run off? cover for better protection. This cover safeguards you till additional three years if you are going to retire or taking a professional break. This coverage does not charge any extra payment and helps you if there is any late claim.
Earlier professional liability insurance was sought by legal and accountancy professionals only. However, with increased consumer awareness, risk level and number of judgments going in favour of clients, professionals from a wide array of industries are opting for this. Advent of internet has made buying professional liability insurance easier.
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